1. Bifurcation theory of flexible exchange rates in the new Keynesian model: An Application
- Author
-
Mustafa Bayram and Anil Burcu Ozyurt Serim
- Subjects
Bifurcation,Hopf bifurcation,new-Keynesian macroeconometrics,stability ,Matematik ,new-Keynesian macroeconometrics ,lcsh:T57-57.97 ,lcsh:Mathematics ,lcsh:Applied mathematics. Quantitative methods ,Bifurcation ,Hopf bifurcation ,stability ,lcsh:QA1-939 ,Mathematics - Abstract
Formerly, the fixed exchange rate was identified as the main policy in economy, but in time it has been proved that the applicability of this policy in economy is not possible. With the new Keynesian approach, this situation has led to the formation and development of new monetary policies. The Keynesian model monetary policy in this article has been based on the flexible exchangerate. By applying the bifurcation theory on monetary policy parameters the interrelations among the inflation target value, the outputgap and the equilibrium real interest rate were examined.
- Published
- 2017